Help funding the sale of a non-warrantable condo

[Greg Schow]

BP community I need guidance! My partners and I own 33 condos of a larger 63 unit complex. We were surprised what value sellers are realizing for similar units in the area and decided to put one of our units up for sale to test the waters. We went under contract in 3 days for $136,400. The homeowner just had financing fall through because this unit is classified by Fannie Mae as "Non-Warrant-able". Meaning more than 20% of the condo complex is owned by 1 individual/group. Has anyone run into this before? Has anyone found a way around it?

As far as I can tell the only way we'll be able to sell these units to homeowners is by providing a pre-packaged loan solution to them with a portfolio lender/private lender who is not subject to the Fannie Mae restrictions. I guess the only other option is to seller finance these units or do a lease option. I'm open to all advise you may have for me in this situation. We may end up just raising private money to seller finance these units unless I can find a portfolio lender that can work around these parameters.

Thanks BP Community!